The Pound Sterling’s exchange rate has rallied across the board today as markets ready themselves for some strong economic data from the UK.

The Pound to Dollar exchange rate was the slowest mover after British inflation figures for July printed as forecast.

The Pound found support versus the Japanese Yen, the Euro and the Swiss Franc, any gains against these currencies could be considered a safe haven rally.

The release of UK CPI inflation data had little impact on short-term interest rates barely moved and UK government bond futures pared losses after the data, which showed inflation slowed slightly to 2.8 percent year on year from 2.9 percent in June.

Overnight indexed interest rate are still pricing in a first rise in the Bank of England's main interest rate in late 2015, this is likely to hold the Pound back, a year earlier than suggested last week by the central bank in its first forward guidance on monetary policy.

Figures released earlier today also showed British house price inflation leapt to 2006 levels, this could lead investors to believe the UK is about to experience another property market rally.

The Pound to Dollar exchange rate hit a high of $1.5491 GBP/USD not far from last Thursday's $1.5574 GBP/USD which is the Pounds best showing since June 19. Resistance has been noted around the 200 day moving average of $1.5529 GBP/USD.

The Pound to Euro exchange rate rallied 0.5% to 1.1660 GBP/EUR before running out of steam.

The FTSE 100 stock index held steady, market focus will now shift back to future UK data releases the best of which will be tomorrow’s unemployment data coupled with the minutes for the last Bank of England monetary policy meeting.

Last week the BoE pledged to keep monetary policy accommodative until the unemployment rate falls to 7 percent from the current 7.8 percent, a move the central bank expects to take at least until 2016, this makes tomorrow’s unemployment data release all the more crucial.

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